Every spring, Valley buyers and sellers ask me the same question: “Is now a good time?” In 2026, my honest answer is: yes — but with clear eyes about what the market is actually doing. This isn’t 2021. It’s also not 2023. It’s something in between, and that matters.
Where Prices Stand
Home prices across the San Fernando Valley have stabilized after several years of turbulence. Sherman Oaks is carrying a median sale price of roughly $1.5 million as of January 2026, up about 7% year-over-year per Redfin. The broader Los Angeles County median sits between $895,000 and $942,000 depending on the data source, with the California Association of REALTORS® tracking a statewide median near $942,610.
The rapid appreciation of 2020–2022 has decisively cooled. Valley neighborhoods are now seeing steady, moderate growth — the California Association of REALTORS® projects approximately 3.6% statewide price growth in 2026. That’s healthy and sustainable, not a bubble, and not a crash.
Inventory: Tighter Than It Looks
One of the defining facts of the current Valley market is that inventory remains constrained despite being slightly better than a year ago. Active listings are rising — California saw active listings hit a 66-month high in mid-2025 — but that improvement hasn’t translated into a buyer’s market in most Valley micro-neighborhoods. In desirable pockets of Sherman Oaks, Studio City, Valley Village, and Encino, well-priced move-in-ready homes are still generating multiple offers.
The homes that sit on the market are typically overpriced, have condition issues, or face location challenges. Correctly positioned homes continue to sell. The gap between homes that move and homes that stall is wider than ever.
Days on Market Are Up — And That’s Normal
Homes in the Valley are taking somewhat longer to sell than during the peak frenzy years. The average across Los Angeles is now around 56 days from list to contract, versus sub-30 days during the height of the market. In Sherman Oaks specifically, the average is around 72–79 days.
For buyers, this is genuinely good news. You have time to conduct proper due diligence, negotiate inspections, and make thoughtful decisions rather than waiving everything in a panic. For sellers, it’s a reminder that thoughtful pricing and presentation matter more than they did a few years ago.
Mortgage Rates: Finally Moving in the Right Direction
As of late February 2026, 30-year fixed mortgage rates sit around 6.09% — the lowest they’ve been in 2025–26. Experts project rates will stay in the 5.9%–6.2% range through Q1 2026, with potential movement below 6% by late in the year.
This is meaningful. Rates in the low 6% range are still above the sub-3% anomaly of 2020–2021, but they’re below the 7%+ peak of 2023, and the direction of travel is improving. Many buyers who have been sitting on the sidelines are choosing to buy now and refinance later rather than wait indefinitely for a lower rate that may never arrive.
What This Means If You’re Selling This Spring
Spring 2026 is shaping up to be a solid selling window. Historically, April through June is the most active period in California real estate — homes sell fastest in April (about 37 days on average) and command the highest premiums in June. The combination of improving rates, increasing buyer activity, and limited new competition from other sellers makes this a real opportunity for Valley homeowners.
The key is pricing strategy. The days of listing aggressively high and waiting for buyers to fight each other are mostly behind us. Homes that hit the market correctly — well-priced, well-staged, well-marketed — are still getting strong results. Homes that test the ceiling tend to sit, require price reductions, and ultimately sell for less than if they’d started at market.
What This Means If You’re Buying This Spring
More inventory is coming online as the market heats up, giving you more to choose from than you’d have had last fall. You have more time to make decisions, and there’s more room to negotiate on condition issues, repairs, and credits than there was two years ago.
That said, quality homes in prime locations are still competitive. Coming in pre-approved, having your criteria clear, and working with an agent who knows the Valley micro-markets intimately will make a meaningful difference in your ability to move quickly and confidently when the right home comes along.
➡ Want a personalized market analysis for your specific neighborhood? I provide free, no-obligation home valuations and buyer consultations. Call (323) 620-3439 or email kendrafuchs@gmail.com